IF THIS WAS A SCAM, IF MGT IN ANYWAY WAS TRYING TO PUMP AND DUMP, AND DILUTE AND RIP OFF THE SHAREHOLDER FOR NO REASON, THE RS ITEM WOULD NOT HAVE BEEN ON THIS PROXY. MGT is ALREADY and presently APPROVED to RS our shares at a minimum of 1 to 8, to a maximum of 1 to 40! They literally could have announced a RS of 1 to 40 today and be fully within their right to "rip us off". But they didn't. Instead they lowered the approved RS option to 1-for-2!
CURRENTLY, A/S 75,000,000 and RS option at ratio of 1-for-8 to 1-for-40
After shareholder meeting, A/S 250,000,000 and RS option at 1-for-2
Makes sense for the increase in A/S as this gives them the option to raise money for any and all of their operations, should anything come up. Yes ideally we want company revenue to pay for operations. But we all know this is still a brand new company that is only now being built up and restructured. Until the revenue generating services/products/mining are up and running, this is there for them to use if needed. So yes, it is may be dilutive once they decide to sell some of those shares, but this is not a pump and dump. This is company development, and it's why they are a public company ... to raise the funds to get up and running.
Bottom line is this is the question all the real bears have been raising all along - how will MGT pay for all this? And here is the answer. at the end of it all, shareholder value WILL increase because the products and services and operations they are raising money for today will bring us $$$$.
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"MGT Weekend update: our team is finishing up our new website! It'll be a work in progress but an available resource for all investors. $mgt"
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